The Bharat Vyapar Bandh called by the Confederation of All India
Traders (CAIT) on 20th September, 2012 in protest against FDI in Retail
has evoked good response from all over the Country. Nearly 10 thousand
Trade Federations & Associations are expected to participate in the
Bharat Vyapar Bandh.The traders have sought support to their Bharat
Vyapar Bandh from all political parties and organisations of
farmers,transporters,labourers,employees and other sections of the
people who are dependent upon retail trade for their livelihood. The FDI
in retail will create un-even level playing field in the country which
will be tilting towards the MNCs and will prove to be a nightmare for
trade and consumers.The Trade leaders demanded that Govt should withdraw
the permission of FDI in Retail & constitute a Joint Committee of
all stakes holders to make indepth study of the Retail Trade & to
look into the recommondations of parliamentry standing committee.
CAIT National president B.C. Bhartia & National Secretary General Praveen Khandelwal questioned the need of FDI in Retail Trade. The Indian retail sector which is being successfully run by the indiginious capital is registering an annual growth of about 15% p.a. and contributing nearly 10% to the GDP has an impressive track record and therefore no foreign investment is required. The shortcomings on the infrastructure front is purely a failure of the Government and for such a failure the small traders can not be made scapegoat who has a fear of being wiped out once the MNC’s begin their operations in India simply of the reason that they operate on predatory pricing policy to wipe out the competition. They will compete with each other as they are doing in other countries. When in controlling situtation they also choke free supply of merchandise as they play refree and decide what products should go to consumers and what not. The dictum “ When Elephants fight, the ground below gets trampted” will prove true.
The foreign retailers can open in big cities. But they will source from mandis across rural India and small towns. With their money power, over time, they can corner the supply of produce and dominate the sourcing side. This will devastate the Indian trade in rural and small towns. If Gangotri is cornered, then the water supply in the plains will not be there. This is what the government is permitting. Competition is not only at retail. It will be at source of supply. PLEASE NOTE THAT 50% OF RURAL ECONOMY IN INDIA IS SERVICES, AND A MAJOR PART OF THAT IS TRADE, BOTH WHOLESALE AND RETAIL. This will be devastated.
CAIT National president B.C. Bhartia & National Secretary General Praveen Khandelwal questioned the need of FDI in Retail Trade. The Indian retail sector which is being successfully run by the indiginious capital is registering an annual growth of about 15% p.a. and contributing nearly 10% to the GDP has an impressive track record and therefore no foreign investment is required. The shortcomings on the infrastructure front is purely a failure of the Government and for such a failure the small traders can not be made scapegoat who has a fear of being wiped out once the MNC’s begin their operations in India simply of the reason that they operate on predatory pricing policy to wipe out the competition. They will compete with each other as they are doing in other countries. When in controlling situtation they also choke free supply of merchandise as they play refree and decide what products should go to consumers and what not. The dictum “ When Elephants fight, the ground below gets trampted” will prove true.
The foreign retailers can open in big cities. But they will source from mandis across rural India and small towns. With their money power, over time, they can corner the supply of produce and dominate the sourcing side. This will devastate the Indian trade in rural and small towns. If Gangotri is cornered, then the water supply in the plains will not be there. This is what the government is permitting. Competition is not only at retail. It will be at source of supply. PLEASE NOTE THAT 50% OF RURAL ECONOMY IN INDIA IS SERVICES, AND A MAJOR PART OF THAT IS TRADE, BOTH WHOLESALE AND RETAIL. This will be devastated.
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